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US Labor Department obtains consent judgment ordering fiduciary of defunct Eynon, Pa., company to sign over $20,500 to employee profit sharing plan
Date of Action: June 3, 2013
Type of Action: Consent judgment
Name(s) of Defendant(s): Charles Yaskulski, Eagle Warranty Corp., and Eagle Warranty Corp. profit sharing plan
Allegations: In 2003, Eagle Warranty Corp. established the Eagle Warranty Corp. profit sharing plan for its employees. An investigation conducted by the U.S. Department of Labor’s Employee Benefits Security Administration found that from January 2006 through May 2009, employee contributions were withheld by the company and deposited into the plan’s trust for periods ranging up to 178 days after they were deducted from the employees’ compensation. The investigation also found that from March 2009 to May 2009, the company did not deposit payroll deductions withheld from the employee’s compensation into the plan’s trust. The company ceased operations and filed for bankruptcy in 2009. In total, the profit sharing plan is owed approximately $22,027.46 in unremitted contributions and lost opportunity costs. The plan had approximately 46 participants entitled to a distribution benefit.
Resolution: The U.S. Department of Labor has obtained a consent judgment ordering Charles Yaskulski to sign over his rights to $20,500 from the escrow account, currently being held for legal matters involving the Pennsylvania Office of Attorney General, as restitution to the plan. Additionally, Yaskulski was removed as the plan’s trustee, and is permanently enjoined from acting as a fiduciary or service provider to any plan covered by the Employee Retirement Income Security Act.
The judgment appoints Lefoldt & Co. to serve as independent fiduciary of the plan, with full authority to administer the plan, make an accounting of the plan’s assets, and make distributions to the plan’s participants and beneficiaries.
The judgment resolves a lawsuit filed by the department on April 4, 2013.
Court: United States District Court for the Middle District of Pennsylvania
Docket Number: 3:13-cv-00854
U.S. Department of Labor materials are accessible at www.dol.gov. The information above is available in large print, Braille, audio tape or disc from the COAST office upon request by calling 202-693-7828 or TTY 202-693-7755.